Why Trump’s proposal on Gaza is ringing alarm bells in the region

U.S. President Donald Trump looks on, during a meeting with Jordan's King Abdullah, in the Oval Office at the White House in Washington, U.S., February 11, 2025. (REUTERS)
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Updated 12 February 2025
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Why Trump’s proposal on Gaza is ringing alarm bells in the region

  • Egyptian authorities have publicly rejected the idea of displacement of Palestinians on human rights grounds
  • From the earliest days of the Gaza war, Arab governments, particularly Egypt and Jordan, have said Palestinians must not be driven from land where they want to make a future state, which would include the occupied West Bank and Gaza

WASHINGTON: US President Donald Trump has infuriated the Arab world by saying that Palestinians would not have the right of return to the Gaza Strip under his proposal to redevelop the enclave, which has been devastated by an Israeli offensive. From the earliest days of the Gaza war, Arab governments, particularly Egypt and Jordan, have said Palestinians must not be driven from land where they want to make a future state, which would include the occupied West Bank and Gaza. Trump first suggested on January 25 that Egypt and Jordan should take in Palestinians from Gaza, a proposal they strongly oppose. In a shock announcement on February 4, after meeting Israeli Prime Minister Benjamin Netanyahu in Washington, Trump proposed resettling Gaza’s 2.2 million Palestinians and the US taking control and ownership of the demolished seaside enclave, redeveloping it into the “Riviera of the Middle East.”
On February 10, he said Palestinians would not have the right of return to Gaza under his plan, contradicting his own officials who had suggested Gazans would only be relocated temporarily. Trump’s plan touches on one of the most sensitive issues in the Arab-Israeli conflict, the right of Palestinians to return. Trump, known as a tough dealmaker in his earlier career as a property developer in New York, said that he believed he could persuade Jordan and Egypt to take in displaced Palestinians. He also said Palestinians could be resettled in “much better housing.”
Many of Gaza’s buildings have turned into rubble since the war between Hamas and Israel erupted on October 7, 2023.
Trump’s plans are likely to heighten fears among Palestinians in Gaza of being driven out of the coastal strip, and stoke concern in Arab states that have long worried about the destabilising impact of any such exodus.

WHAT IS BEHIND THE CONCERNS?
Palestinians have long been haunted by what they call the “Nakba,” or catastrophe, when 700,000 of them were dispossessed from their homes during the war that surrounded the creation of Israel in 1948.
Many were driven out or fled to neighboring Arab states, including to Jordan, Syria and Lebanon, where many of them and their descendants still live in refugee camps. Some went to Gaza. Israel disputes the account that they were forced out.
Today about 5.6 million Palestinian refugees — mainly the descendants of those who fled — currently live in Jordan, Lebanon, Syria, the Israeli-occupied West Bank and Gaza. About half of registered refugees remain stateless, according to the Palestinian foreign ministry, many living in crowded camps.
Trump’s talk of resettling some two million Gazans is a nightmare for Jordan, which has long feared the mass expulsion of Palestinians from Gaza and the West Bank, and echoes a vision long propagated by right-wing Israelis of Jordan as an alternative Palestinian home.
The anxiety dates back to what is known as Black September. In 1970 the Jordanian army launched a huge offensive by that name to retake control of territory occupied by the Palestine Liberation Organization (PLO) in Jordan.
King Hussein, fearing the growing influence of Palestinian factions, cracked down on Palestinian nationalists. His generals ordered tanks into the capital Amman. Over 3,000 Palestinians were estimated killed and some 20,000 fled Jordan.
The latest conflict, currently paused amid a fragile ceasefire agreement, has seen an unprecedented Israeli bombardment and land offensive in Gaza, devastating urban areas.
Most Gazans have been displaced several times in Israel’s offensive, launched after the 2023 attack on Israel by Hamas that killed 1,200 people, according to Israeli tallies.
More than 48,000 people have been killed in Gaza since then, according to Palestinian health officials.

HOW HAVE PALESTINIANS MOVED DURING THIS CONFLICT?
Before Israel launched its offensive in 2023, it told Palestinians in north Gaza to move to what it said were safe areas in the south. As the offensive expanded, Israel told them to head further south toward Rafah, on the border with Egypt.
Later in the war, before launching a campaign in Rafah, it instructed them to move to a new designated humanitarian zone in Al-Mawasi, an area that stretches 12 km (7 miles) along the coast, starting from the western areas of Deir Al-Balah in central Gaza to Khan Younis and Rafah in the south.
According to UN estimates, up to 85 percent of the population of Gaza — one of the world’s most densely populated areas — have already been displaced from their homes.

COULD A MAJOR DISPLACEMENT FROM GAZA HAPPEN?
Many Palestinians in Gaza have said they would not leave the enclave even if they could because they fear it might lead to another permanent displacement in a repeat of 1948.
Egyptian authorities have publicly rejected the idea of displacement of Palestinians on human rights grounds.
The most populous Arab country would also be wary of hosting hundreds of thousands of Palestinians potentially including members of Hamas, after years of crackdowns on domestic Islamists such as the Muslim Brotherhood, which had close ties to Hamas.
Egyptian President Abdel Fattah El-Sisi has shown no tolerance for Islamists. He views them as an existential threat to his country and thousands of Islamist militants have been imprisoned.

WHAT HAVE ISRAEL’S GOVERNMENT AND ITS POLITICIANS SAID?
Israel’s then-Foreign Minister Israel Katz, now serving as defense minister, said on February 16, 2024, that Israel had no plans to deport Palestinians from Gaza. Israel would coordinate with Egypt on Palestinian refugees and find a way to not harm Egypt’s interests, Katz added.
However, comments by some in the Israeli government have stoked Palestinian and Arab fears of a new Nakba. Finance Minister Bezalel Smotrich has repeatedly called for a policy of “encouraging the migration” of Palestinians from Gaza and for Israel to impose military rule in the territory.

 


Hong Kong firm begins arbitration proceedings over ruling against its Panama Canal port contract

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Hong Kong firm begins arbitration proceedings over ruling against its Panama Canal port contract

  • The Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997
  • US Secretary of State Marco Rubio views the operation of the ports as a national security issue
HONG KONG: Hong Kong’s CK Hutchison Holdings said Wednesday its subsidiary started arbitration proceedings against Panama after that country’s Supreme Court ruled a concession for the subsidiary to operate Panama Canal ports was unconstitutional.
Hutchison said it strongly disagreed with last week’s ruling, and China warned Panama would pay “a heavy price” if it persisted. Panama’s president has moved to assure the public that the ports would operate without interruption after the ruling, which advanced a US aim to block any influence by China over the canal linking the Atlantic and Pacific oceans.
Hutchison’s subsidiary, Panama Ports Company, began arbitration proceedings Tuesday under the rules of the Paris-based International Chamber of Commerce, the company said in a statement.
The rules are overseen by the chamber’s International Court of Arbitration, an independent body, and it’s unclear what the impact of the proceedings would be. The Panamanian president’s office and commerce ministry did not immediately respond to requests for comment late Tuesday local time.
The ruling draws ire from China
The court ruling has drawn backlash from China, and the tensions may complicate Hutchison’s plan to sell its port assets in dozens of countries to a group that includes the US investment firm BlackRock Inc.
The planned sale has already been caught up in tensions between Beijing and Washington. US President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities.
On Tuesday night, Beijing’s office overseeing Hong Kong affairs criticized the Panama court ruling as legally groundless and ridiculous, saying the ruling reflected that Panamanian authorities were bowing down to hegemonic powers. It did not specify the countries but pointed to politicians from some countries who had said they were “encouraged” by the ruling, in an apparent veiled reference to US Secretary of State Marco Rubio.
In a statement shared on social media platform WeChat, the office said that China will never bow to hegemonism and has sufficient means and tools, as well as capability, to uphold justice in the international economic and trade order.
“Panama’s authorities should recognize the situation and correct their course,” it said. “If they persist in their own way and refuse to see reason, they will pay a heavy price both politically and economically!”
A company caught in US-China tensions
The Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997. The awkward position Hutchison found itself in highlights the challenges Hong Kong business elites face in navigating Beijing’s expectations of national loyalty, especially during U.S-China tension. CK Hutchison is owned by the family of Hong Kong’s richest man, Li Ka-shing.
The company said last July that it was considering seeking a Chinese investor to join as a significant member of the consortium under its sale plan, a move that some interpreted as way to please Beijing, but CK Hutchison hasn’t said more since.
The consortium also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, which is chaired by Italian shipping scion Diego Aponte, whose family reportedly has a longstanding relationship with Li’s.
Last May, Hutchinson co-managing director, Dominic Lai told shareholders that Terminal Investment was the main investor.
Panama’s government has maintained it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it. But Rubio made clear that the US viewed the operation of the ports as a national security issue.